Japan's Nikkei rises as US economic worries recede

"Investors bought stocks because the gains of the Nikkei in the previous session were not enough to recoup declines on Monday," said Naoki Fujiwara, a senior fund manager at Shinkin Asset Management.

Japanese shares slid the most in two months on Monday as concerns mounted over the U.S. economy and trade, while speculation grew over a potential upheaval in domestic politics.

"It is just the declines of heavyweight stocks that are dragging the index today," said Fujiwara.


Tokyo Electron slumped 3.8% to weigh the most on the Nikkei. Mizuho Securities analysts downgraded the rating of the chip-making equipment maker to "Neutral" from "Buy".

Mitsui Fudosan leapt 5.9% after the property developer's quarterly net profit nearly doubled from a year ago.

Mitsubishi Heavy Industries rose 4.8%, jumping for a second session, after the heavy machinery maker clinched a landmark deal to build Australia's next-generation warships.

Of more than 1,600 stocks trading on the Tokyo Stock Exchange's (TSE) prime market, 79% rose, 18% fell and 3% traded flat.

All but one of the TSE's 33 industry sub-indexes rose, with the property sector climbing 2.8% to be the top performer.

The services sector slipped 0.9%, dragged by a 4.4% drop for Recruit Holdings.